4 Replies Latest reply on Mar 26, 2013 10:21 AM by JerryD

    Invest RMD?

    jpayton
      If all or or some of the RMD is not needed, what is the best way to invest the difference?
        • Re: Invest RMD?
          JerryD
          Don't know if it's the best choice, but I have been toying with putting any excess  RMD into the TIAA-CREF After Tax Annuity. I investigated this a few years ago because I wanted to know if there was any TC vehicle that would let me put new money not destined for an IRA or TC retirement account. In addition, I wanted to have access to The Real Estate Account when I did this. This choice fit that bill.
           
          Just one point, the annuities come under different rules in that TIAA and CREF are considered as separate annuity companies, as I understand it. That means that switching funds between them requires a form to transfer and this is not as convenient or timely as using the on-line system. 
          • Re: Invest RMD?
            You obviously have no need (at this time) for all your RMD and you may not need it in the future. Since you've paid any taxes when the money was withdrawn, why not start  Roth account naming your children or grandchildren as beneficiaries? Upon your passing (it's gonna happen sooner or later) they will be able to withdraw it tax free. Many very nice diversified funds to choose from.
              • Re: Invest RMD?
                JerryD
                Reefguy said...
                You obviously have no need (at this time) for all your RMD and you may not need it in the future. Since you\'ve paid any taxes when the money was withdrawn, why not start  Roth account naming your children or grandchildren as beneficiaries? Upon your passing (it\'s gonna happen sooner or later) they will be able to withdraw it tax free. Many very nice diversified funds to choose from.
                 
                You can only contribute to a Roth if you have earned income up to the level of the contribution. You could, however, use the RMD funds to pay the taxes on a conversion from an IRA to a Roth.
              • Re: Invest RMD?
                Pickle
                I put mine into the Tax Exempt bond fund so that it will
                not generate additional taxes.